OAKLAND, Calif.–(BUSINESS WIRE)–Shares of Cronos Group Inc. dropped as much as 8% in intraday trading on February 18, 2022 after the company finally issued restatements for the second quarter of 2021, as well as issuing its third quarter results. In its restatement, Cronos Group said it was taking an impairment charge of $236.1 million. Previously, when Cronos Group first announced in an SEC filing that it would be required to restate its financial statements for the three and six months ended June 30, 2021, the company estimated it should have taken an impairment charge of at least $220 million for that same period. Gibbs Law Group is looking into a potential Cronos Securities Class Action Lawsuit on behalf of shareholders who lost money in Cronos Group Inc. (NASDAQ: CRON).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Friday, February 18, 2022, cannabis company Cronos Group issued its 2021 Q3 results and also restated its 2021 Q2 results. As reported by Market Watch, Cronos Group said its net income had fallen to $55.1 million, compared to $95.2 million in the year-ago period, and the company also announced it would be starting cost-saving measures.
Previously, its shares had crashed after announcing on November 9, 2021 that it would not file its quarterly report for the period ended Sept. 30, 2021, in a timely manner. That same day, Cronos disclosed in an SEC filing that it would be required to restate its unaudited interim financial statements for the three and six months ended June 30, 2021, previously filed in a Form 10-Q. According to the filing, Cronos concluded that the financial statements for this period “should no longer be relied on.”
Following news of its restatement, Cronos’ stock price dropped as much as 8% in intraday trading on February 18, 2022, causing harm to investors.
What Should Cronos Investors Do?
If you invested in Cronos, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Cronos Group has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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